St. Louis' Top 150 Privately Held Companies: 126-150

Roughly one-fourth of the executives we interviewed at St. Louis’ largest private companies used that phrase — cautiously optimistic — to describe the outlook for 2009. I bet the other three-fourths were thinking it, if they’re optimistic at all.

It’s the reality of today’s business landscape, not just in St. Louis, but around the globe. No matter the industry, every company is feeling the effects of this recession. And although business leaders are hopeful that we’re near the bottom and that a recovery will begin at some point this year, they’re not being Pollyannas about it.

I don’t need to point out all the troubling stats and signs that lead to caution. Instead, I’ll mention a potential bright spot for those seeking a reason for optimism.

The housing industry is often viewed as a leading indicator for where the economy is heading. It’s one of the first sectors to slump, and one of the leaders of the rebound. If that’s the case this time, we can be encouraged that the Commerce Department reported a 22.2 percent jump in housing starts in February. Meanwhile, St. Louis’ largest homebuilder, McBride & Son Homes, said it sold 300 homes in the first two months of the year, compared to 1,400 homes total in 2008.

I’d like to thank Business Journal researchers Evan Binns and Lucie Wolken, who did a commendable job putting together this year’s list of the top 150 privately held companies. As our researchers quickly found, it’s much easier to get revenue information from private companies when business is going well rather than when the economy is slumping. Evan, in particular, spent countless hours seeking the most accurate and up-to-date revenue and employee figures, and then double- and triple-checked it all. This year’s list includes nine newcomers and fewer pure estimates, a testament to the researchers’ hard work.

Rob Hurtt, Section editor

126. NewGround

2008 revenue: $101 million -9%

Given the state of the financial services industry, it’s understandable that NewGround, which designs and builds bank buildings, suffered a revenue drop of 9 percent in 2008. That’s off record revenue of $111 million in 2007. NewGround is also benefiting from the downturn because it provides other services that banks want, such as branding, naming and logo design, employee training, consulting and digital communications. Even as banks close branches, NewGround can help them decide which ones.

“We diversified the company to capitalize on the turmoil in the market,” said Kevin Blair, president and chief executive. NewGround’s majority owner is Chairman Ted Golitz of Chicago. It has four minority owners: Blair; Skip Zaegel, chief financial officer; Bob Mannion, senior vice president of construction; and Jim Kueneke, senior vice president of retail.

Leadership: Chairman Ted Golitz, President and CEO Kevin Blair

2007 revenue: $111 million (new to list)

Employees: 85 local, 200 total

T127. Essex Industries

2008 revenue: $100 million -4.8%

Essex Industries covers a wide range of businesses from aerospace to defense to home health-care, and that diversity has helped keep revenue at the company steady. Recently, the Defense Logistics Agency singled out Essex Cryogenics of Missouri for its performance in improving the agency’s ability to provide supplies and services to America’s war-fighters. Essex Cryogenics specializes in the development and production of pressure vessel, cryogenic tank and life support equipment products for the military.

2007 revenue: $105 million (rank 117)

Employees: 400 local, 600 total

T127. Basler Electric Co.

2008 revenue: $100 million +17.6%

Gary Dolbeare, president and chief operating officer of Basler Electric Co., said company revenue is in the $100 million range after a 2008 that was stronger than 2007. However, he anticipates a significant drop in 2009 as the recession leads businesses and consumers to pull back. “Business is soft this year,” he said. “We’re a worldwide company that’s being affected by the economic climate everywhere.” Still, Basler will open a 10-person sales and technical office in Singapore this summer.

Headquartered in Highland, Ill., the electrical regulation and control device company has manufacturing facilities in Texas, Mexico, France and China. “You’ll find our products in your home air conditioner and on Ameren’s power grid,” Dolbeare said. Founded in 1942 by Carl Basler, the company remains family-owned and is now led by Carl’s son, William Basler.

Leadership: Chairman and CEO William Basler, President Gary Dolbeare

2007 revenue: $85 million (rank 136)

Employees: 450 local, 1,000 total

T127. Dobbs Tire & Auto Centers

2008 revenue: $100 million +2%

Dobbs Tire & Auto Centers saw revenue edge up 2 percent last year to $100 million as consumers refrained from buying new vehicles and instead repaired the ones they owned and kept them longer, said President and CEO David Dobbs. He is projecting a revenue increase of 3 percent to 5 percent in 2009 as consumers continue to put new car purchases on hold.

The company has 38 locations in Missouri and Illinois. The firm did not add any new locations last year, but Dobbs hopes to expand this year to Troy, Mo., and the Festus-Crystal City area. “We’re looking to expand,” Dobbs said. “But we’re watching everything we do.” The company, based in High Ridge, is owned by the Dobbs family.

Leadership: Chairman Don Dobbs, President and CEO David Dobbs

2007 revenue: $98 million (rank 123)

Employees: 625 local and total

T127. SBI Inc.

2008 revenue: $100 million (estimate)

SBI Inc. does business as Schroeder & Tremayne, an Affton-based manufacturer, distributor and marketer of bath and body products and auto-care goods. The company is expanding the retail presence of one of its bath and body brands, Garden Botanika, formerly sold only through the Internet and catalogs. Although the bath products market is growing globally, it has been stagnant in the U.S. for the past few years, according to industry publication Bath & Shower Products: Global Industry Guide.

The company distributes its products through major retailers, including Wal-Mart and Bed Bath & Beyond. The firm is headed by Chairman, President and Chief Executive John Wilmsen Sr., who declined to be interviewed. It is owned by the Wilmsen family and SBI employees.

Leadership: Chairman, President and CEO John Wilmsen Sr.

2007 revenue: $100 million (estimate) (rank 119)

Employees: 250 local, 500 total

131. J.H. Berra Holding Co.

2008 revenue: $99 million (estimate)

J.H. Berra Holding Co., the parent to J.H. Berra Construction Co., began feeling the effects of the slowing economy even before last year. The company let go more than 100 workers in 2007. The U.S. Department of Commerce said construction spending during January 2009 was 9.1 percent below the January 2008 figure.

Some of J.H. Berra’s large commercial projects include work for the 550-acre, $400 million NorthPark mixed-use development near Lambert-St. Louis International Airport. The company’s utility division installed sewer infrastructure at the $33 million Meadows at Lake St. Louis retail center, which opened last summer, and the company handled the earthwork at the $120 million Manchester Highlands in west St. Louis county. CEO and President John Berra Jr. holds the largest stake in the family-owned company.

Leadership: CEO and President John Berra Jr.

2007 Revenue: $115 million (rank 109)

Employees: 430 local, 500 total

132. Cope Plastics Inc.

2008 revenue: $98.8 million +18.5%

Alton-based Cope Plastics experienced an 18.5 percent increase in revenue in 2008. President and CEO Jane Saale attributes the increase to working both as a distributor and a fabricator of plastic products, as well as some price increases.

Last year, Cope assembled a centralization group, which consists of individuals from its 16 branches who collectively make sourcing decisions for the company. “The centralization group is the toggle switch on whether work goes in- house or outside the company,” Saale said. “We’re making sure our inventories are lean, reviewing our expense policy, and getting all of our ducks in a row.” Saale said that although Cope is restructuring to create its centralization group, the company is not adding employees nor does she expect layoffs. Cope is owned by the Beem family and was founded by Saale’s grandparents, Dwight and Mozelle Cope.

Leadership: Chairman Donald Beem, President and CEO Jane Saale

2007 revenue: $83.3 million (rank 130)

Employees: 220 local, 350 total

133. G.S. Robins and Co.

2008 revenue: $95 million +30.1%

G.S. Robins saw a 30 percent revenue increase to a record $95 million, thanks in part to growth in the biofuels market and to new products. The company provides specialty chemical blending, packaging and logistics. President and CEO Stephen Robins is majority shareholder of the family-owned firm, which his grandfather founded in 1923.

Last August, eight workers were injured in a chemical spill at the company’s East St. Louis facility, and the top initiative in 2009 is environmental health and safety, said Jay Brown, chief operating officer. The company has stopped packaging the chemical involved in the spill, hired Michael Liebert as its environmental health and safety manager and beefed up safety training. The U.S. Department of Labor’s Occupational Safety and Health Administration has sought a fine of $1.2 million against G.S. Robins for the spill.

Leadership: President and CEO Stephen Robins

2007 revenue: $73 million (rank 150)

Employees: 64 local, 90 total

134. LMS

2008 revenue: $94 million (estimate)

Logistics Management Solutions (LMS) is a third-party logistics firm that helps manufacturers, wholesalers and retailers optimize transportation management. Founded in 1996 by CEO and President Dennis Schoemehl, LMS has grown quickly, scoring a spot on Inc. magazine’s 2006 ranking of the 500 fastest-growing private companies in the country.

Leadership: President and CEO Dennis Schoemehl

2007 revenue: $94 million (rank 129)

Employees: 80 local, 120 total

135. Gannon International

2008 revenue: $92.7 million +15.9%

Gannon International’s revenue jumped nearly 16 percent to $92.7 million. Much of the increase is attributed to the company’s Vietnam operations, including a new agreement to distribute Budweiser and a new boxed drinks factory. Last year, Gannon became the Budget Rental Car franchisee in Vietnam, and the company has plans to build a brewery there. Closer to home, Gannon is in the midst of fundraising for a $50 million real estate equity fund. “We think it’s an excellent time to jump in,” said Robert Greene, executive vice president and chief operating officer. “We’ve all been reminded of the importance of diversification.” President and chief executive Bill Franke founded the company in 1983 and is the majority owner.

Leadership: President and CEO Bill Franke

2007 revenue: $80 million (141)

Employees: 150 local, 945 total

136. Villa Lighting Supply

2008 revenue: $91.9 million -5.6%

A decline in new retail openings led to a dip in revenue for Villa Lighting Supply Inc. It’s one of the nation’s largest suppliers of commercial lighting equipment. The family-owned company, led by Matt, Jack, Dan and John Villa, also provides maintenance for retailers, replacing thousands of bulbs a year for Wal-Mart, Walgreens and Target stores.

“We’re trying to react to the downturn in new construction markets by working with existing customers to make their facilities more energy efficient,” Vice-President John Villa said. He said new tax rebates by Ameren under the utility’s business energy-efficient program also is helping to drive sales. Villa Lighting moved into a $13 million headquarters at 2929 Chouteau in January 2009. The facility is vying for LEED Silver certification. “We’re using the new building as a sales tool,” Villa said.

Leadership: President Jack Villa

2007 revenue: $97.3 million (rank 125)

Employees: 80 local, 84 total

137. H.B.D. Contracting Inc.

2008 revenue: $91 million - 14.2 %

Delays that caused 2008 projects to become 2009 projects led to a 14.2 percent revenue drop at H.B.D. Contracting last year, according to Michael Perry, president and co-owner. On the bright side, the general contractor projects 2009 revenue to remain steady at $91 million despite the economic slowdown.

“We have always been a very diverse company that works with industrial clients, retail clients, medical clients and on historical renovations,” he said. “Because of this diversity, we’ve moved away from soft markets and moved to markets that have projects” such as health care.

In December, H.B.D. completed work on a $14 million building for the Ballpark Lofts project downtown, and it will complete the $10 million Richmond Heights Hilton Homewood Suites hotel this month. Perry said HBD is preparing to start construction on the $12 million Christian Care Center and a $14 million, three-story addition to the historic Bank of Washington in Washington, Mo. Perry owns H.B.D. with Dan O’Keefe III and Brian Kowert.

Leadership: President Michael Perry

2007 Revenue: $106 million (rank 116)

Employees: 130 local and total

138. Gundaker Commercial Group

2008 revenue: $90.8 million -3.4%

Gundaker Commercial Group, one of St. Louis’ largest commercial real estate and development firms, saw a slight revenue drop in 2008, but it has several new housing developments under construction. The Chesterfield-based firm started construction in late December on the 48-unit Wingate Manor apartments in Shiloh, Ill., and is beginning construction on the 34-unit Villas at Peruque Hills apartments in St. Charles County. Gundaker Commercial Group also is completing construction on the third phase of Stratford Manor, a 78-unit senior housing development in North St. Louis County. “Senior, multi-family, for-lease and affordable housing is an (active) market,” said President and CEO Mike Hejna. “Capital funding or the lack therof is going to preclude any other kinds of significant development.”

Gundaker Commercial Group’s brokerage division, Grubb & Ellis|Gundaker Commercial, is based in Clayton. Gundaker Commercial Group’s Asset Management division manages more than a million square feet of commercial space and has more than 2,000 multi-family units under management or in development. Gundaker Commercial Group is owned by Gordon Gundaker Jr., who joined the firm full-time in 2007 after retiring as chairman of Coldwell Banker Gundaker, the largest residential real estate agency in the state.

2007 revenue: $94 million (rank 124)

Employees: 130 local, 132 total

139. PayneCrest Electric

2008 revenue: $90 million -10%

A year after seeing revenue spike 61 percent, PayneCrest Electric and Communications saw revenue dip 10 percent to $90 million. President and Owner David Payne expects a further slide, to about $70 million, in 2009. The revenue shift is a result of two things: the slumping economy and larger than normal projects in 2008. “In 2008, we finished the (Lumiere Place) casino and two cement plants,” Payne said. “These were some of the largest jobs in company history. We were fortunate to have those for a while.”

According to Payne, the company will try to increase 2009 revenue by exploring opportunities outside St. Louis for the first time in company history. “By late summer we’re really going to feel the downturn,” he said. “We have some business but not like we’ve had in the past.”

Leadership: President David Payne

2007 Revenue: $100 million (rank 119)

Employees: 500 local and total

140. Kozeny-Wagner Inc.

2008 revenue: $86 million +13.9%

While Kozeny-Wagner Inc. posted a 14 percent jump in 2008 revenue to $86 million, owner and President Patrick Kozeny said he’s “cautiously optimistic moving forward.” Kozeny-Wagner completed construction of the $19 million Donald W. Reynolds Journalism Institute at the University of MissouriThe company has ongoing projects at Ameren, Monsanto and Washington University.

Kozeny said a challenge for 2009 will be controlling risk when it comes to subcontractors and suppliers. “If they do not have suitable capital, this can cause financial distress that flows to a project’s progress and creates risk for us,” he said. Kozeny-Wagner is monitoring weekly reports of suits, liens and judgments relating to the construction industry and has developed a watch list of at-risk subcontractors and material suppliers.

Leadership: President Patrick Kozeny

2007 revenue: $75.5 million (rank 144)

Employees: 100 local, 105 total

141. Manna Pro Products LLC

2008 revenue: $85 million +10.4%

Manna Pro’s 10 new products, including its expanding horse snack line, helped push sales up in 2008. So too did price increases passed along to customers to cover the firm’s own cost increases in wheat, corn and soybeans, according to President John Howe. He took over that role last August and now leads the company following the retirement of CEO Andrew Bresler at the end of 2008.

Manna Pro projects a sales gain this year to $85 million as the business renews its focus on in-store merchandising, and plans to roll out six new animal feed products, Howe said. Manna Pro makes feed supplements and snacks for horses, and other farm livestock, as well as a diverse group of animals, including goats, alpacas, sheep, birds, rabbits and gerbils. Chairman Edward Ryan owns the business with three private investors the company declines to identify.

Leadership: Chairman Edward Ryan, President John Howe

2007 revenue: $77 million (rank 143)

Employees: 31 local, 170 total

142. Imo’s Pizza

2008 Revenue: $84 million +2.4%

The recession is having mixed effects on pizza chains nationally, but at Imo’s Pizza, revenue grew 2.4 percent in 2008 to $84 million. “Sales are up but so are costs,” said CFO Steve Conway. “We’ve seen a dramatic increase in wheat and cheeses prices, so we’re doing everything we can to get the lowest possible prices, while maintaining the same quality product.” Imo’s is St. Louis’ top pizza chain in terms of market penetration, according to New York-based Scarborough Research.

Marge and Ed Imo opened their first pizza parlor at Thurman Avenue and Shaw Boulevard in South St. Louis in 1964. Today, the company operates 96 pizzerias in Missouri and Illinois, as well as one in Kansas.

Leadership: CEO Ed Imo, President Marge Imo

2007 revenue: $82 million (rank 138)

Employees: 4,300 local and total

143. Daugherty Business

Solutions 2008 revenue: $81 million -5.8%

A sluggish economy and a new focus on developing senior leadership before pursuing additional expansion contributed to Daugherty Business Solutions’ 5.8 percent revenue decline in 2008, said President and CEO Ron Daugherty. “Over the last few months we’ve had to tighten a few things,” he said. “As we’ve regrouped, we have had to take a hard look at cost reductions.” He said examples included delaying salary increases, delaying annual sales and recruiting conferences and placing tighter control on spending.

Daugherty co-owns the management and technology consulting company with his wife, Jan. “Our niche is using technology to solve business challenges, and our cost-effective approach to getting results is now more important than ever.”

Leadership: President and CEO Ron Daugherty

2007 revenue: $86 million (rank 135)

Employees: 243 local, 455 total

144. Soft Surroundings

2008 revenue: $80.2 million -0.3%

Soft Surroundings isn’t overly worried about the soft economy. The company, which sells comfortable women’s apparel, bedding and beauty care products, saw revenue slip by $200,000 in 2008, but Chairman and CEO Tom Wilcher expects sales to increase in 2009. Soft Surroundings has four retail stores, including one in Richmond Heights, and sends out 35 million catalogs annually for mail ordering. A fifth store is set to open in Denver in 2010. “If the economy cooperates, we’ll open more,” Wilcher said. “But for now, we’re in a holding pattern.”

Founder and President Robin Sheldon is a former head of merchandising at Coldwater Creek. Grant Williams, who co-founded the company with Sheldon, is the firm’s largest shareholder. Wilcher and Gil Kemp, who lives in New York, also hold stakes.

Leadership: Chairman and CEO Tom Wilcher, President Robin Sheldon

2007 revenue: $80.4 million (rank 140)

Employees: 196 local, 347 total

145. Summit Distributing

2008 revenue: $77 million (estimate) +2.7%

The second-largest beer wholesaler in Missouri, Summit Distributing saw its revenue rise 2.7 percent in 2008 despite an overall industry slowdown. After growing by about 1 percent in each of the past 10 years, U.S. beer sales rose only half a percent last year, and major brewers such as SABMiller actually saw declines in the fourth quarter, according to industry publication Beer Marketer’s Insights.

Summit serves more than 2,500 retail customers in the St. Louis area and six surrounding counties. It has a 125,000-square-foot distribution center located in Earth City. Summit is owned by Chairman and Chief Executive Tom Stillman, who also owns a minority stake in the St. Louis Blues.

Leadership: Chairman and CEO Tom Stillman, President Kim Barrow

2007 Revenue: $75 million (rank 146)

Employees: 160 local and total

146. Hortica

2008 revenue: $75.8 million -3.6 %

After seeing 2008 revenue drop 3.6 percent, Hortica is expecting a 6 percent rebound in 2009. “The insurance industry has experienced a very competitive market,” said Mona Haberer, who became president and CEO in 2008 after serving as the company’s CFO for nine years. She said industrywide revenue was estimated to be down 2 percent.

Haberer said Hortica is expecting growth, though, because it has added independent agents to serve areas the company previously did not cover. She said the toughest challenges for 2009 will be “maintaining underwriting discipline and obtaining adequate rates in these economic times.” Hortica is a mutual insurance company, owned by its policyholders.

Leadership: Chairman Jim Leider, President and CEO Mona Haberer

2007 Revenue: $78.6 million (rank 148)

Employees: 192 local, 234 total

147. Millstone Bangert Inc.

2008 revenue: $74 million +39.6%

Millstone Bangert Inc. can thank the Highway 40 reconstruction for part of its 39.6 percent bump in revenue last year. The St. Charles-based heavy and highway construction company is a member of the Gateway Constructors coalition working on the $535 million project. Other recent projects include the $26 million Olive Road/I-170 interchange project and a $23 million Highway 40 project located between Lake St. Louis Boulevard and Interstate 70.

Millstone Bangert also recently completed $13 million worth of taxiway work at Lambert-St. Louis International Airport. The company also provides site development services and is responsible for the 250-acre Fountain Lakes Commercial Center located in St. Charles County. Thom Kuhn and Hyatt Bangert are the majority owners of the firm.

Leadership: President and CEO Thom Kuhn

2007 Revenue: $53 million (new to list)

Employees: 150 local and total

148. Mills Properties

2008 revenue: $73.5 million -17.4%

The credit crunch put a dip in Mills Properties’ revenue and a crimp in plans for its largest development to date, a $55 million apartment complex in the Central West End called CityWalk on Euclid. Chairman and CEO Bruce Mills said he’s putting the financing in place to start construction on the 187-unit development this summer.

Despite the tough economic conditions, Mills Properties acquired six multi-family properties last year, including the 252-unit Village Green Apartments in Town and Country for more than $20 million. “The whole world is going through a tough time economically, and fortunately, apartments remain strong,” Mills said. Family-owned Mills Properties owns more than 8,000 apartment units in Missouri and Illinois. Mills Properties’ subsidiaries include Mills Development and Pantheon Construction.

Leadership: Chairman and CEO Bruce Mills, President Kirk Mills

2007 Revenue: $89.3 million (rank 135)

Employees: 209 local and total

149. Holland Construction

2008 Revenue: $71 million -21.1%

Bad weather that led to slow starts early in the year was the primary contributor to Holland Construction Service’s 21 percent decrease in revenue, according to President, CEO and majority owner Bruce Holland. Owners’ reluctance to “pull the trigger on projects” was a secondary cause, he said.

A large chunk of the Swansea, Ill.-based contracting firm’s 2008 volume came from school construction, including signing a contract for a joint-venture project with JE Dunn Construction for SIU-Carbondale’s planned $83 million sports complex. The company trimmed its office staff from 31 to 30 and let go a couple project superintendents. “Our jobs have gotten bigger and fewer in quantity,” Holland said. “The cuts are 80 percent about how we’re doing business and 20 percent about the economy.”

Leadership: President and CEO Bruce Holland

2007 revenue: $90 million (rank 133)

Employees: 55 local and total

150. The Pasta House Co.

2008 revenue: $63.6 million +2.6%

The Pasta House Co. grew revenue 2.6 percent in 2008, thanks to low-cost meal specials, according to president and co-founder Kim Tucci. He said a radio advertising blitz has helped spur sales, which are up 5 percent in the first two months of 2009. “We’re on a good trend right now,” Tucci said. “We had over 600 radio spots advertising six meals under six dollars, and we’ll be adding more items to that menu for April and May, making it eight under eight.”

Tucci and co-owner Joe Fresta are currently negotiating a development deal to open six Pasta House Pronto! restaurants in Chicago within five years. Tucci said he expects to finalize the deal by December. Celebrating its 35th anniversary, Pasta House recently opened a full-service restaurant at Lambert Airport and also plans on extending hours for its downtown Pronto! restaurant once the neighboring Old Post Office Plaza opens, Tucci said.